Members

Sr No. Roll No 1. 19 2. 46 Name Nishant Jain saizeen manasiya

3 55

Priyanka Singh

Introduction
Ranbaxy Laboratories Ltd. is a research based International pharmaceutical company with its headquarters in India. It manufactures a range of high quality, affordable generic drugs. The company has manufacturing facilities in around 9 countries. It has strong presence in around 49 countries, products available in around 125 countries globally. It has dedicated workforce of about 10,500 employees representing 51 different countries.Ranbaxy was established in 1961 and went public in the year 1973. It has global sales of US $1340 million for the year ended on 31st December, 2006. It has the

largest market in USA (sales appx. US $380 million); then come Europe and BRICS (Brazil, Russia, India, China, South Africa).

Daiichi Sankyo Company,

Daiichi Sankyo Co., Ltd. is a Japan-based major pharmaceutical company, which ranks number 22 in the world in sales.Daiichi Sankyo was established in 2005 through the merger of Sankyo Co., Ltd. and Daiichi Pharmaceutical Co., Ltd. , which were century-old pharmaceutical companies based in Japan.In 2006, Daiichi Sankyo acquired Zepharma, the OTC drugs unit of Astellas Pharma.On June 10, 2008, Daiichi Sankyo agreed to take a majority (35%) stake in

Indian generic drug maker Ranbaxy, with a deal valued at about $4.6 billion. Ranbaxy's Malvinder Singh will remain CEO after the transaction.

HISTORY OF RANBAXY
Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese company Shionogi. The name Ranbaxy is a combination of the names of its first owners Ranbir and Gurbax. Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir and Gurbax. After Bhai Mohan Singh's son Parvinder Singh joined the company in 1967, the company saw a significant transformation in its business and

scale. His sons Malvinder Mohan Singh and Shivinder Mohan Singh sold the company to the Japanese company Daiichi Sankyo in June 2008. DIAZEPAM was the first product manufactured by Ranbaxy and was most effective at that time to hit the Indian market and was vastly accepted. Ranbaxy was established in June 16, 1961. In year 1973 Ranbaxy went public. After the governments liberalization policy in year 1995, Ranbaxy was the 1st Indian company to become a MNC. Over the years, Ranbaxy has invested heavily and built up considerable strength in manufacturing and marketing. Currently it has 14,000 strong team over 50 nationalities with sales over a 125 countries and manufacturing in 7 countries.Earlier in June 2008, Ranbaxy

entered into an alliance with one of the largest Japanese innovator companies, DAIICHI SANKYO. And the combined entity will be catapulted to the no. 15th position in the global pharmaceutical space. The company is steadily moving towards its vision of becoming a 5 billion dollar company by the year 2012. Dr. Tsutomu Une and Mr. Arun Sawhney are the Chairman and C.E.O of Ranbaxy respectively.

RANBAXY ACQUISITION
REASONS FOR THE DEAL:

1. A complementary business combination that provides sustainable growth by diversification that spans the full spectrum of the pharmaceutical business.RLL & D.S. are major player in the world pharmaceuticals industry. Both have potential to cater the demand and through research to generate the demand for further development of the business. 2. An expanded global reach that enables leading market positions in both mature and emerging markets with proprietary and nonproprietary products. Ranbaxy has large market in India and neighbour countries, while .D.S. has wide market in developed countries like: Japan U.S.,Europe and U.K. So, both can extend their market and provide best quality services & products.

3. Strong growth potential by effectively managing opportunities across The the full world pharmaceutical life-cycle.

pharmaceutical industry is growing at 11%.so, this acquisition will beneficial to meet the extending opportunities of the industry. The future industry scenario demanding more quality product which can definitely be cater by this acquisition. 4. Cost competitiveness by optimizing usage of R&D and manufacturing facilities of both companies, especially in India. As in terms of the labour cost, manufacturing cost, exporting cost lower than the other countries, it reduces the cost per unit and that is directly beneficial to customers. Cost advantage get in the India ,by that surplus amount utilise into r&d.

THE DEAL THAT WAS :

Singh sold his 34.8% stake for around Rs. 10,000 crore ($2.4 billion) at Rs. 737 ($17) per share. Daiichi Sankyo was to pick up another 9.4% through a preferential allotment. According to Securities & Exchange Board of India (Sebi) norms, it was to a make an open offer to the shareholders of Ranbaxy for another 20%. There could also be a preferential issue of warrants to take the Daiichi Sankyo stake up by another 4.9%. That would come into play if the ordinary shareholders don't respond to the open offer and Daiichi Sankyo needs another way to

raise its stake to 51%.Ranbaxy, with $1.6 billion in global sales in 2007, had a profit after tax of $190 million, a gain of 67% over the previous year. It has a footprint in 49 countries and manufacturing facilities in 11. It has 12,000 employees, including 1,200 scientists and has been pouring money into R&D, though obviously not on the same scale as the Western majors. Ranbaxy is among the top 10 global generic companies. Its stated vision has been to be among the top five global generic players and to achieve global sales of $5 billion by 2012. Daiichi Sankyo is the product of a 2005 merger between Sankyo and Daiichi. In the financial year ended March 2008, it had net sales of $8.2 billion and a profit after tax of $915 million. It has a presence in 21 countries and

employs 18,000 people. It is the second largest pharmaceutical company in Japan. The combined company will be worth about $30 billion..

BENEFIT OF THE DEAL

Benefit of the Deal a win-win for Ranbaxy and Daiichi. Competitiveness by optimizing usage of R&D and manufacturing facilities of both

companies

The

combination

of

the

two

companies will give Ranbaxy access to Daiichi 's expertise in research while the Japanese company will benefit from low-cost production on the sub-continent, amid a deepening profits crisis in Japans drugs industry. Daiichi will Gain position of major player in Generics.

RECENT PROGRESS

Recent progress 13% rise in annual sales, helped by a strong contribution from Ranbaxy Laboratories Ltd, Indias largest drug maker by revenue, which it bought two years ago. Daiichis sales increased by 16% in the US and by 28.2% in Europe. In India, revenue rose 292.8% to 59.9 billion, mainly on Ranbaxys sales. Ranbaxy posted a net profit of Rs 963 crore for the quarter ended 31 March, against a loss of Rs761 crore a year ago. Sales had improved 60% to Rs2,490 crore, as the firm for the first time sold medicines in excess of $500 million (Rs2,255 crore) in a quarter.

EFFECT ON STOCK MARKET

Effect on Stock Market The share price of Ranbaxy rose 3.86% to Rs 526.40 on June 9, two days before the company announced its buyout by Daiichi Sankyo. The benchmark Sensex plunged 506 points the same day . Effect on Stock Market June 10, a day before the deal was announced, the Ranbaxy scrip surged 6.52% to Rs 560.75 and the Sensex fell 177 points. The stock ended almost flat at Rs 560.80 on June 11 June 11 The reason as to why the Ranbaxy stock had been moving against the general market direction since it became public when the company announced

about the sale of a majority stake in it to the Japanese firm Daiichi Sankyo .

Strategy
Ranbaxy markets growth is focused on increasing and to the momentum in the generics business in its key through routes. It organic inorganic evaluate continues

acquisition opportunities in India, emerging and developed markets to accentuate its business geographies and with competitiveness. near equal focus The on Companys growth is well spread across developed and emerging markets. Ranbaxy has entered into new speciality therapeutic segments like Bio-similars, Oncology, Peptides and Limuses. These new growth

areas will add significant depth to its existing product pipeline.

TABLET NAMES

S Brand No name 1 2 3 4 5 6 7 8 9 10 11 12

Generic name Therapeutic segment CHERICOF Complete Cough Syrup COUGH SYRUP for family CHERICOF Cough remedy capsules SOFTGEL Appetite enhancerEATEASE Children (Herbal) Garlic oil for all round GARLIC PEARLS health GESDYP Digestive Enzymes OLESAN GEL OLESAN LOZENGES OLESAN OIL PEPFIZ REVITAL SOFTGELS REVITAL LIQUID REVITAL SENIOR REVITAL WOMAN REVITALITE VOLINI GEL VOLINI SPRAY VOLINI TABS CCA - Cough, Cold & Allergy CCA - Cough, Cold & Allergy GI - Gastro-intestinals GI - Gastro-intestinals

13 14 15 16 17

GI - Gastro-intestinals CCA - Cough, Cold & Cold rub (Herbal) Allergy Cough & sore throat cure CCA - Cough, Cold & ( Herbal) Allergy Nasal decongestant oil CCA - Cough, Cold & (Herbal) Allergy Effervescent digestive GI - Gastro-intestinals enzymes Ginseng, vitamins & VMS-Vitamins, Minerals minerals & Supplements Ginseng, vitamins & VMS-Vitamins, Minerals minerals & Supplements Vitamins, Minerals, VMS Vitamins, Ginseng and Isoflavones Minerals and (Specially formulated for Supplements 50 years+) Ginseng, Vitamins and VMS Vitamins, Minerals Minerals and (Specially formulated for Supplements women) VMS Vitamins, Soy Protein Supplement Minerals & Supplements Complete Pain relief Gel ANALGESIC-Topical Complete Pain relief ANALGESIC-Topical Spray Complete Pain relief tabs ANALGESIC-Oral

MISSION
The Company is driven by its vision to achieve significant business in proprietary prescription products by 2012 with a strong presence in developed markets. It aspires to be amongst the Top 5 global generic players and aims at achieving global sales of US $5 Bn by 2012. Ranbaxy's mission is To become a Research-based International Pharmaceutical Company. The Company is driven by its vision to Achieve significant business in proprietary prescription products by 2012 with a strong presence in developed markets.

VALUES

1. Achieving customer fundamental of business.

satisfaction

is

2. Provide products and services of the highest quality. 3. Practice dignity and relationship and provide equity in

4. opportunities for our people to realize their full potential. 5. Ensure profitable growth and enhance wealth of the shareholders. 6. Foster mutually beneficial relations with all our business partners. 7. Manage our operations with high concern for safety and environment.

SWOT ANALYSIS
Strengths 1. Low cost of production. 2. Large pool of installed capacities 3. Efficient technologies for large number of Generics 4. Large pool of skilled technical manpower. 5. Increasing liberalization of government policies.

Weakness
1. Low technology level of Capital Goods of this section. 2. Non-availability of major intermediaries for bulk drugs. 3. Lack of experience to exploit efficiently the new patent regime. 4. Very low key R&D. 5. Low share of India in World Pharmaceutical Production

Opportunity
1. Growing incomes. 2. Growing attention for health 3. New diagnoses and new social diseases 4. Spreading prophylactic approaches

5. New therapy approaches

Threats
1. Containment of rising health-care cost.
2.

High Cost of discovering new products & fewer discoveries.

3. Stricter registration procedures 4. High entry cost in newer markets 5. High cost of sales and marketing.

Corporate Social Responsibility

As a global leader in pharmaceuticals the company takes pride not

only in providing products that enable people to live healthier and fuller lives, but also in giving back to the society. At Ranbaxy, Corporate Social Responsibility and concern for Environment, Health and Safety are a part of the corporate DNA.

Anti HIV/AIDS

Project

Ranbaxy comprehensive anti-HIV portfolio comprises Bio-Equivalent Anti-Retrovirals (ARVs) and Anti-Infectives for Opportunistic infections. Ranbaxy provides pre & post sales support to institutions, NGOs, and Ministries of Health, making Ranbaxy ARVs available in their respective treatment programs Several humanitarian and government programmes have sourced ARVs from etc.

TOP COMPETITORS OF RANBAXY IN PHARMA MARKET

Cipla Ltd. Dr. Reddy'S Laboratories Ltd Nicholas Piramal India Ltd. Glaxosmithkline Pharmaceuticals Ltd Cadila Healthcare Ltd. Pfizer Ltd. Sun Pharmaceutical Inds. Ltd Wockhardt Ltd Aventis Pharma Ltd Biocon Ltd

CONCLUSION: Ranbaxy laboratories ltd. (which is the no.1 pharmaceutical company in India) acquired by Daiichi Sankyo Company Ltd.(a Japans third largest pharmaceutical company and also in top 20 pharma company in the world It was the biggest acquisition of a domestic pharmaceuticals company by foreign company. This acquisition provided benefit to both companies. D&S could enter into the Asian market which is worlds largest pharmaceuticals. Ranbaxy got the strategic partner which helped to explore the foreign market and its innovator facility to accelerate the growth of the company. We hope this acquisition will prove more beneficial not only D & S and

Ranbaxy but also to the mankind in terms of the new innovative drugs and medicines for the deadly diseases.